Are you eligible for a special tax deduction?
Architects, engineers, contractors and environmental consultants or energy service providers are eligible for a special tax deduction on either new building or additions to existing buildings. The buildings must be owned by a federal, state or local government entity incorporating energy-efficient commercial property building codes. This includes K-12 public schools and public university buildings.
Section 179D provides a tax deduction per square foot of building area for the installation of systems designed to reduce the total energy and power costs by 50% or more when compared with a reference building. Building systems eligible to secure the tax deduction include:
- Interior lighting systems
- Heating, cooling, ventilation, hot water systems
- Building envelope systems (outer shell used to protect the indoor environment and facilitate climate control
Our professionals have been working with construction professionals and their key providers of technical specifications for more than 35 years. Let us advise you on the tax ramifications and benefits of 179D deductions.
How much could you potentially deuct?
Square
Footage | Building has one Eligible System
(-$60/sq.ft.) | Building has all Eligible Systems
(-$1.80/sq.ft.) |
| 75,000 | $45,000 | $135,000 |
| 100,000 | $45,000 | $135,000 |
| 250,000 | $150,000 | $450,000 |
| 500,000 | $300,000 | $900,000 |
| 1,000,000 | $600,000 | $1,800,000 |